Risk Pricing - Risk based fees for cross-border

Introducing risk based pricing for FI relationships, payments and trade financeIntroducing risk based fees for your cross-border payments

Elucidate's Risk Pricing introduces a new business model to determine the cost of bank's service fees based on the potential of financial crime risk, improving their relationships through increased transparency and fairness.

About Risk Pricing

A fair and sustainable business model for the finance industry

Inspired by the credit rating agency approach we've built a comprehensive method for evaluating and mitigating the risk of financial crime through data-based insights and standardized risk profiles.

Our Ratings and Risk Pricing products enable your business and revenue growth, while promoting lawful behavior and contributing to a fairer and more transparent system.

Correspondent banks:
Offset costs of risk controls

With risk-based pricing, correspondent banks are not required to de-risk whole markets, as they have the tools to evaluate the risk and price fees accordingly. This approach not only creates the potential for new revenue, but also offsets risk management costs.

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Create a new revenue stream by offsetting the cost of controls to the point of origin while reducing the risk of your portfolio

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Obtain transparency of your exposure to risk and set different levels of risk tranches and pricing based on risk appetite

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Improve the experience of your client portfolio by reducing friction and subjectivity, and smoothening price conversations

Respondent banks:
Obtain fair and transparent price structures

The risk pricing approach offers respondent banks a level of transparency and information they had never accessed before. Banks buying correspondent services can now learn and understand how and why they are paying certain fees at different rates and how to reduce them.

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Obtain a common understanding of risk with correspondents, learn how this affects your fees and make decisions through objective data analysis

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Be rewarded for your financial crime mitigation efforts with lower fees and more access to services

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Secure your correspondent relationships and get direction on areas with the greatest improvement potential

Improve client experience with higher revenues.

A more profitable but fair revenue model is possible.

Talk to our team

Split transactions into tranches according to your appetite

Transactions analyzed are split into three tranches based on their financial crime risk scores by Elucidate’s algorithm. These tranches can be tailored to match your institution's risk tolerance, allowing you to manage different relationships accordingly.

Implement reliable and accurate pricing based on risk tranches

Every payment you process is different from each other and so should your transaction fees. Use your portfolio tranches for price adjustments according to the risk of institutions and transactions.

Start pricing risk into your portfolio

PAYMENT PRICING

Differentiate your clients pricing and reward good behaviour

With Risk Pricing for financial institutions, unlock a new revenue model based on risk exposure rather than volume. Expand your business while also improving your portfolio relationships through increased transparency and fairness.

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Ongoing monitoring

Enhance risk mitigation with ongoing monitoring for every bank's risk profile

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Reduced friction

Speak a common language and unify the risk framework for your teams and across institutions

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Consistent compliance

Ensure that your compliance procedures always meet or exceed industry standards.

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Competitive analysis

Compare yourself to others globally or in your region to understand your performance

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Zoom-in and out

Assess yourself on the operational level or obtain a company-wide perspective as needed.

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Automated processes

Boost productivity replacing manual processes and analysis with automation

Elucidate's risk pricing scoring

Using machine learning to deliver a financial crime risk score subject to pricing per financial institution, account, or transaction

Multi-level analysis for assured quality score results

Elucidate's risk pricing algorithm calculates and analyses financial crime risk into relevant risk metrics to deliver a FinCrime Risk Score subject to pricing per financial institution, account, or transaction.

This score is based on three variables:

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Elucidate FinCrime Index (EFI) Rating

Calculated based on nine themes and generates a rating per financial institution. Read the whitepaper

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Data Completeness Assessment Value (ISO 20022)

Level of the data quality for transaction data fields key to compliance with FATF recommendation and ISO 20022

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Advanced Transaction Assessment

A risk overlay value generated based on financial crime typologies, anomalous flows, customer base risk, Nesting

Insights

Network management

What are the risks and limitations of the correspondent banking system?

In this article, we discuss the risks in correspondent banking and how to overcome these to benefit your bank and bolster correspondent relationships.

Banking